OTHER VOICES

The consequences of the fiscal cliff for our seniors

By Sarah StrohSpecial to the Star-Banner

Published: Sunday, December 30, 2012 at 6:30 a.m.

Last Modified: Friday, December 28, 2012 at 6:06 p.m.

Lately, you cannot turn on the TV or look at the newspaper without the term “fiscal cliff” appearing. Both the president and Congress are frantically trying to come up with solutions to our nation’s financial problems before we “go over the cliff.” The solutions involve a combination of tax increases and spending cuts. There are several alternatives being proposed and some of them could have detrimental effects not only on the services that Marion Senior Services (MSS) provides, but to all local charities.

There are two immediate threats that need to be addressed. The first involves sequestration, or automatic across-the-board spending cuts. The 2011 Budget Control Act requires a $109 billion sequestration on Jan. 2, unless Congress finds equivalent savings elsewhere.

For nondefense discretionary programs like the Older Americans Act (OAA), this represents an 8.2 percent cut in funding. On a nationwide basis, this means a loss of more than 17 million meals under the OAA programs. For MSS, this would mean a reduction of more than 10,000 meals in our congregate meal program, or 12,000 meals in our home-delivered meal program in 2012.

Our congregate meal program enables many seniors to enjoy a hot meal and socialize with friends at one of our 12 meal sites around Marion County. For our home-delivered meal clients, not only do they receive a hot meal but, more importantly, a well-check to ensure they are doing OK. They are able to visit with someone when their meal is delivered, who in more cases than not is the only person they will see during the day.

Cuts to these programs would have a severe effect on the well-being of our clients in these programs. In addition, these cuts would come at a time when we are seeing an increase in demand and need for our services from seniors right here in Marion County, as we already have waiting lists for our services, including meals.

The second threat that needs to be addressed is the potential changes that are being proposed to the charitable tax deduction. Not only is this a threat to donations to MSS, but to all charities nationwide.

There are two main proposals.

First, there would be a limit on higher-income taxpayers to reduce the deduction for charitable giving from the current level of 35 percent to 28 percent. This means that someone who donates $1,000 currently would receive a $350 deduction, but would only receive a $280 deduction under the proposed change.

Second, the overall limit for itemized deductions for all taxpayers would be between $25,000 and $50,000. This limit would include deductions for state and local taxes as well as the home-interest deduction. Deducting for just these items could exhaust the limit of $25,000 to $50,000 quickly and not leave much, if any, available for charitable deductions.

Many charities, including MSS, rely on donations from our faithful supporters to help fund the vital services we provide our clients. Any measure that would place a limit on itemized deductions could have a detrimental effect not only on MSS, but other worthwhile charities, too.

So what can be done? I urge you to join me in writing, emailing or calling your local, state and federal representatives and explain to them the importance of not cutting the funding to these vital Older American’s Act programs that assist our seniors in so many ways, as well as not putting a limit on itemized deductions which could reduce or even eliminate donations from many people who financially support nonprofit organizations in our community.

Yes, something has to be done to prevent even more serious consequences to our nation’s financial future. Just don’t let the answer be to the detriment of our vulnerable senior population.

<p>Lately, you cannot turn on the TV or look at the newspaper without the term “fiscal cliff” appearing. Both the president and Congress are frantically trying to come up with solutions to our nation's financial problems before we “go over the cliff.” The solutions involve a combination of tax increases and spending cuts. There are several alternatives being proposed and some of them could have detrimental effects not only on the services that Marion Senior Services (MSS) provides, but to all local charities.</p><p>There are two immediate threats that need to be addressed. The first involves sequestration, or automatic across-the-board spending cuts. The 2011 Budget Control Act requires a $109 billion sequestration on Jan. 2, unless Congress finds equivalent savings elsewhere.</p><p>For nondefense discretionary programs like the Older Americans Act (OAA), this represents an 8.2 percent cut in funding. On a nationwide basis, this means a loss of more than 17 million meals under the OAA programs. For MSS, this would mean a reduction of more than 10,000 meals in our congregate meal program, or 12,000 meals in our home-delivered meal program in 2012.</p><p>Our congregate meal program enables many seniors to enjoy a hot meal and socialize with friends at one of our 12 meal sites around Marion County. For our home-delivered meal clients, not only do they receive a hot meal but, more importantly, a well-check to ensure they are doing OK. They are able to visit with someone when their meal is delivered, who in more cases than not is the only person they will see during the day.</p><p>Cuts to these programs would have a severe effect on the well-being of our clients in these programs. In addition, these cuts would come at a time when we are seeing an increase in demand and need for our services from seniors right here in Marion County, as we already have waiting lists for our services, including meals. </p><p>The second threat that needs to be addressed is the potential changes that are being proposed to the charitable tax deduction. Not only is this a threat to donations to MSS, but to all charities nationwide.</p><p>There are two main proposals.</p><p>First, there would be a limit on higher-income taxpayers to reduce the deduction for charitable giving from the current level of 35 percent to 28 percent. This means that someone who donates $1,000 currently would receive a $350 deduction, but would only receive a $280 deduction under the proposed change.</p><p>Second, the overall limit for itemized deductions for all taxpayers would be between $25,000 and $50,000. This limit would include deductions for state and local taxes as well as the home-interest deduction. Deducting for just these items could exhaust the limit of $25,000 to $50,000 quickly and not leave much, if any, available for charitable deductions.</p><p>Many charities, including MSS, rely on donations from our faithful supporters to help fund the vital services we provide our clients. Any measure that would place a limit on itemized deductions could have a detrimental effect not only on MSS, but other worthwhile charities, too.</p><p>So what can be done? I urge you to join me in writing, emailing or calling your local, state and federal representatives and explain to them the importance of not cutting the funding to these vital Older American's Act programs that assist our seniors in so many ways, as well as not putting a limit on itemized deductions which could reduce or even eliminate donations from many people who financially support nonprofit organizations in our community.</p><p>Yes, something has to be done to prevent even more serious consequences to our nation's financial future. Just don't let the answer be to the detriment of our vulnerable senior population.</p><p> </p><p><i>Sarah Stroh is executive director of Marion Senior Services Inc. in Ocala.</i></p>